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CNN Live At Daybreak

Latest Developments in Fighting in Najaf, Negotiations With Muqtada Al Sadr; Report on Torture at Abu Ghraib Says Responsibility Does Not Go Far Up Chain of Command

Aired August 19, 2004 - 05:00   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.


THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.


CAROL COSTELLO, CNN ANCHOR: The mean streets of Iraq's Sadr City -- gunfire, death and deadlines.
It is Thursday, August 19.

This is DAYBREAK.

And good morning to you.

From the CNN Global Headquarters in Atlanta, I'm Carol Costello.

Now in the news, in Najaf today, renewed clashes between U.S. and Iraqi forces and the Mahdi Army. The Iraqi official told CNN just minutes ago radical Shiite cleric Muqtada al-Sadr must hold a public news conference today to announce that he's disbanding his army and leaving the sacred mosque in Najaf. We're going to take you live to Baghdad in less than two minutes.

It's been a year since the attack on U.N. headquarters in Baghdad that killed 22 people, including U.S. envoy Sergio de Mello. United Nations officials in New York and elsewhere will hold ceremonies today to remember.

Will you go gaga for Google? The Internet search engine goes public today with a stock offering of $85 a share. Initially, Google aimed for a figure of $108 to $135 per share.

And the cleanup from hurricane Charley goes on. The death toll now up to 22. It's estimated insurers will pay out almost $7.5 billion.

To the forecast center now -- good morning, Chad.

CHAD MYERS, CNN CORRESPONDENT: Good morning, Carol.

(WEATHER REPORT)

COSTELLO: Fresh violence erupts this morning in the Baghdad neighborhood of Sadr City. The area on the edge of the Iraqi capital is an ongoing center of conflict between U.S. and Iraqi forces and militants. In fact, we just got this video in from Sadr City this morning.

In the meantime, the stand-off in Najaf may be over, or it could get much more violent. Muslim cleric Muqtada al-Sadr has agreed to disarm his militia and leave a holy mosque, but the deal now comes with a number of strings attached.

John Vause joins us live from Baghdad with the latest.

This seems to change minute by minute this morning -- John.

JOHN VAUSE, CNN CORRESPONDENT: Absolutely, Carol.

It seems as if after a dramatic day yesterday, with letters to the Iraqi National Conference from al-Sadr's people saying that he is willing to agree to their demands, we're now right back to square one, exactly where we were yesterday. We've heard from the Iraqi minister of state, who is in Najaf making a number of demands on Muqtada al- Sadr.

The minister of state wants the radical Shiite cleric to hear from his own voice, to announce with his own voice that he will give up, that he will give up his Mahdi militia and that he will leave the mosque. He wants Muqtada al-Sadr to hand over all weapons. When asked where he wants those weapons handed over, the minister of state said Muqtada al-Sadr knows the appropriate place. That is all he would say.

The minister of state went on to say Muqtada al-Sadr must free all citizens which are currently being held by the Mahdi militia and by al-Sadr's supporters. That's the first time we have heard from the Iraqi government saying that Muqtada al-Sadr could, in fact, be holding prisoners.

The minister of state went on to say that Muqtada al-Sadr will not have his own court system and also he will not control his own army. Another very important point which was raised in Najaf just a short time ago, the minister of state saying that Muqtada al-Sadr will still be tried on the charges against him. Muqtada al-Sadr, one of the charges, at least, is a charge of murder. And the minister of state saying that Muqtada al-Sadr will stand trial. If he is found not guilty, then, of course, he is free, as anybody else in Iraq is, to lead his life. And if he would like to be a religious leader, that's fine.

Now, there is a deadline on. There's no hard deadline, only the -- the only thing we're getting from the minister of state is he has a few hours to comply. And when asked what will be the ramifications, what, you know, will there be damage to the mosque if there is an assault, that kind of thing, the minister of state says that the Iraqi government and the Iraqi forces have a plan in place, they have solid military intelligence to deal with this and they believe that they can do this, they can execute this military operation without damaging the mosque.

So we've come full circle in the last 24 hours -- Carol.

COSTELLO: Well, this trial idea really throws a wrench into things because doesn't Muqtada al-Sadr want a role in the government? Why do they think he would ever agree to those terms?

VAUSE: Well, it seems as if, on the face of it at least, anyway, the interim Iraqi government is now setting itself up for a showdown. The interim Iraqi government, in many ways, has been split over how to deal with Muqtada al-Sadr. You have the prime minister and his supporters on the one hand, who want a firm military resolution to deal with Muqtada al-Sadr once and for all. And then on the other hand, you have those within the government who believe that negotiations is, in fact, the way to go.

At this stage, at least, with these statements coming from the minister of state, it appears that those who favor a military solution once and for all are now getting their way.

COSTELLO: John Vause live in Baghdad this morning.

Thank you.

Najaf on the brink -- we will talk more about the impact of what's going on there at the half hour with the Baghdad bureau chief for the "Washington Post." Be sure to stick around for that.

More trouble this morning at the notorious Abu Ghraib Prison in Iraq. Recent fighting has left two detainees dead and five others injured. This as the Army is about to release its report on the prison abuse scandal. How high up the chain of command does the blame go?

As CNN Pentagon correspondent Barbara Starr reports, not very.

(BEGIN VIDEO TAPE)

BARBARA STARR, CNN PENTAGON CORRESPONDENT (voice-over): The Army investigation of intelligence and interrogation practices at Abu Ghraib Prison is expected to recommend up to two dozen personnel face disciplinary or criminal proceedings according to defense officials. This would expand the number of people alleged to be involved in the scandal far beyond the seven soldiers currently charged, all members of a police unit.

The report will detail findings of alleged wrongdoing by members of the 205th Military Intelligence Brigade, contractors and other government personnel. It will recommend actions ranging from potential administrative discipline all the way to a criminal investigation, officials say.

Barring last minute evidence, investigators have concluded there were no orders from higher-ups to abuse prisoners in order to get information. The Army's longstanding conclusion is the abuse was the work of out of control soldiers with local commanders not paying attention.

LT. GEN. PAUL MIKOLASHEK, ARMY INSPECTOR GENERAL: We looked at this through the eyes of the soldiers and what we found, as I mentioned too, was not a good picture.

STARR: The brigade's commander, Colonel Thomas Pappas, will likely be criticized for failing to oversee his troops but is not found to be directly involved in the abuse. No one higher up than the colonel is likely to be held responsible. Top commanders in Baghdad will be cited for not adequately overseeing the prison system. An attorney for one of the soldiers already charges says the intelligence brigade was giving the orders.

GUY WOMACK, CHARLES GRANER'S ATTORNEY: This was an interrogation center. He was being directed by military intelligence officers and others in the intel community.

STARR (on camera): Congress is now likely to get its first look at this report next week and will have many questions about yet another Army investigation of itself.

Barbara Starr, CNN, the Pentagon.

(END VIDEO TAPE)

COSTELLO: On to politics now.

President Bush is taking a pre-convention break at his ranch. Aides say he'll be in Texas until the middle of next week. Before heading west, the president wrapped up nearly three weeks of non-stop campaigning with rallies in Wisconsin and Minnesota.

John Kerry on the campaign trail today. He's meeting with firefighters in Boston in about five hours. His so-called Front Porch Tour continues later in nearby Derry -- Derry, New Hampshire, that is. He ends his campaign tour in Charlotte, North Carolina.

New information this morning on the criticism of John Kerry's Vietnam War record. Larry Thurlow says Kerry lied about coming under fire when he won a Bronze Star. Thurlow is a member of the Swift Boat Veterans for Truth, a public advocacy group critical of Kerry. Thurlow won a Bronze Star during the same mission as Kerry and today the "Washington Post" is reporting he was also being fired at during the same mission, because that's what the citation says for his Bronze Star.

Ohio is considered a major battleground state. As of this moment, a CNN/"USA Today"/Gallup poll shows Kerry with a 10 point lead among registered voters. However, among Ohioans considered likely to vote in November, 48 percent pick Kerry and 46 percent pick Bush, which is, of course, a statistical dead heat.

Paula Zahn went to Ohio to check the pulse of undecided voters. Both the Bush and Kerry camps agree voters there could decide the presidency.

(BEGIN VIDEO CLIP)

TUCKER ESKEW, FORMER WHITE HOUSE COMMUNICATIONS OFFICER: The stakes are very high. This is a critically important state. The president returns here often, has many friends from Ohio and people involved in his administration from this state. So -- and has worked very hard on the issues here. So, I think if you look at the economic agenda of this president and his fight to make America prouder, safer, and stronger, Ohio is at the heart of that. It's the heart of our country. And I think this is a great place to have this sort of discussion.

PAULA ZAHN, HOST: But both of you have to be looking at these numbers, which basically show your two candidates in a statistical dead heat and say we've got to go and get some of these undecided voters out there.

TAD DEVINE, SENIOR ADVISER, KERRY CAMPAIGN: Yes, I think, you know, we're in the epicenter of American politics tonight. And I think if any one of our candidates wins most of the people in this room, he's going to be the next president of the United States.

(END VIDEO CLIP)

COSTELLO: The people in that room put some tough questions to both of those men during Paula's town hall meeting.

In News Across America this morning, what's up with the Scott Peterson murder trial? It looks like we'll have to wait until Monday to hear more from Amber Frey. She was supposed to be cross-examined yesterday. A source close to the case tells CNN a dispute over evidence has delayed the cross-examination of Peterson's mistress.

Gloria Allred is Amber Frey's attorney.

(BEGIN VIDEO CLIP)

GLORIA ALLRED, AMBER FREY'S ATTORNEY: It is, of course, frustrating to Amber, because she was ready. The delay causes a great deal more inconvenience for her and her family. And it's difficult. But she will return on Monday at 9:00 and once again she will be ready for the cross.

(END VIDEO CLIP)

COSTELLO: At issue, taped phone conversations the jury has not heard, conversations the defense now wants to enter into evidence.

The judge in the Kobe Bryant rape trial has relaxed his gag order a bit. Lawyers can now make some comments to reporters, but still cannot talk about the credibility or character of Bryant, his accuser or any witness.

In Miami, two people have been charged with abusing their foster child. Four-year-old Rilya Wilson -- remember her? She disappeared three years ago. One of the caregivers, Geralyn Graham, is now charged with kidnapping. Rilya's disappearance shook up Florida's child welfare agency when it was learned caseworkers had not checked on the girl for 15 months.

Your next flight into Chicago's O'Hare might actually be on time. In an effort to cut down delays, there'll be 12 fewer arrivals into the airport per hour. The move starts in November. So far this year, only two thirds of the flights at O'Hare have been on time. Williamsport, Pennsylvania is where it all begins for so many youngsters. The Little League World Series gets under way tomorrow in Williamsport, with 16 teams from around the globe. In the back half of DAYBREAK in the next hour, we'll talk baseball and its popularity today with the author of "Play Ball," the story of Little League baseball. And a hint for you -- Little League baseball is losing popularity fast.

So, we want to know what you think. DAYBREAK'S e-mail Question of the Day -- is baseball still America's favorite pastime? Daybreak@cnn.com. Daybreak@cnn.com. The question again, is baseball still America's favorite pastime?

Are you waiting to gobble up some Google? Get your checkbook ready. We'll tell you how much a share of the Web site is going to cost you.

Plus...

(BEGIN VIDEO CLIP)

VAUSE: Here their targets are pictures of Osama bin Laden. Soon, fighters of the Mahdi Army, holed up in the shrines of Najaf, could be in their sites.

(END VIDEO CLIP)

COSTELLO: We'll get an exclusive look at how the Iraqi Army is preparing to take over security.

And we take you live to Athens for an amazing story of how perseverance does pay off.

But first, here's a look at what else is making news this Thursday morning.

(COMMERCIAL BREAK)

COSTELLO: Stocks rise for the fourth straight session. The Dow is now back above 10,000. It'll open 110 points up this morning.

The Nasdaq opens up 36 points.

And the S&P heads up around 13.

Overseas, European stocks struggle, but edge upward. Britain's FTSE 100 was up 18 points.

France's CAC Index showing a 19 point gain.

In Japan, the Nikkei closed up 129 points.

So, are you going Googling today? Today shares of the popular Internet search engine Google are heading for the trading floor on Wall Street. The SEC OKed Google's IPO, but not before Google slashed its price range. CNN's Mary Snow has all the details for you.

(BEGIN VIDEO TAPE)

MARY SNOW, CNN CORRESPONDENT (voice-over): It is Wall Street's debut of a Hollywood movie -- Google, the IPO with drama packed until the end. Google announcing the final price at $85 a share, at the bottom end of Google's forecast which already had been reduced just hours earlier by 25 percent, signaling far weaker than expected interest in the much hyped IPO. Still Google expects to sell nearly 20 million shares, raising about $2 billion. Part of the drama? Google broke with tradition and offered shares through a blind auction with buyers bidding for shares. Even seasoned investors initially guessed too high.

MATTHEW RHODES KROPF, COLUMBIA UNIVERSITY: I just picked something really I was winging it.

SNOW: Business Professor Rhodes Kropf who specializes in auctions bid shares at $120.

KROPF: Individuals like myself really have almost no way to come up with how to get their information to a per share price.

SNOW: Google's young company founders, whose motto is don't be evil, vow to allow ordinary people better access to its IPO by using the auction process. But those who follow public offerings say the price was too steep.

DAVID MENLOW, IPO FINANCIAL NETWORK: The best analogy I can give you for what the Google model originally was was similar to two young kids on the corner with a lemonade stand trying to sell lemonade at $10 a cup and not getting any sales.

SNOW: And the company had to cut its price.

UNIDENTIFIED MALE: What happened was I think the company realized that demand for its IPO shares was not what the company had expected.

SNOW: But it wasn't just the price that kept investors on the edge of their seats. A "Playboy" article featuring Google's founders raised legal issues about whether the company violated a Securities and Exchange Commission requirement to stay quiet in the period leading up to an IPO.

(on-camera): The next test comes when Google joins its Internet counterparts in trading at the tech-heavy Nasdaq. And just where the stock goes will give the final rating on whether this unusual IPO process was a success or failure.

Mary Snow, CNN Financial News, New York.

(END VIDEO TAPE)

COSTELLO: Your news, money, weather and sports.

It is 5:18 Eastern.

Here's what's all new this morning.

Oprah Winfrey calls it a reality check. She's talking about her experience as a juror in a murder trial. She and the other jurors found the defendant guilty. Winfrey plans to talk about the experience next week on her program. Yes, she's had her cameras following her.

In central Washington, a wildfire has burned at least 11,000 acres. Hundreds of residents were forced from their homes. No deaths or injuries reported.

In money news, oil prices continue to barrel past record breaking highs. Light crude is now above $47 a barrel. New worries about violence in Iraq and a drop in the U.S. oil reserves triggered the latest increase.

In culture, Hooters is hitting the Las Vegas strip. Hooray! The Hotel San Remo will be refashioned into a Hooters Hotel Casino. Plans include a tropical theme with lots of big things, like a super sized pool, big restaurants and big -- well, you know.

In sports, Houston Astros pitcher Andy Pettitte is out for the season. He goes into surgery Tuesday to repair a torn elbow tendon. Pettitte moved to the Astros from the Yankees in describe.

Hi -- Chad.

MYERS: Good morning, Carol.

How are you?

COSTELLO: Good.

(WEATHER REPORT)

COSTELLO: Those are the latest headlines for you this morning.

What's hot on the Web? Would you believe a beer guzzling bear? Stay with us. It's a story you just won't want to miss.

And our e-mail question of the morning. Is baseball still America's favorite pastime? Little League is fast losing popularity among children. So is baseball still America's favorite pastime, or is it lacrosse? We want to hear from you this morning. Daybreak@cnn.com.

(COMMERCIAL BREAK)

COSTELLO: You know, we're always interested in what you're clicking onto on cnn.com. It is time to check our Web clicks this morning to see what stories are getting your attention on cnn.com. And they're very interesting this morning.

MYERS: Sometimes news of the weird. COSTELLO: News of the cute, kind of, I guess.

MYERS: Maybe.

COSTELLO: The number one clicked on story on cnn.com, a bear guzzles 36 beers and passes out at campground.

MYERS: Yes. He was .27 when he did the Breathalyzer.

COSTELLO: He broke into a camp site and there were two kinds of beer. It must have been a beer party camping trip. I don't know. There was Busch beer and Rainier beer.

MYERS: Rainier.

COSTELLO: Oh, is that how you pronounce it? I should have asked the expert.

MYERS: And the commercial is Rainier beer. And the bear went for the Rainier beer and the local brew.

COSTELLO: Yes, he stuck to it. And the only -- they tried to catch the bear, so they had to set a trap using Rainier beer.

MYERS: They put honey in the trap and beer cans and he went in there and they got him.

COSTELLO: And he's being relocated now.

MYERS: Relocated, right.

COSTELLO: The second most popular clicked on story, Paris Hilton's dog is found. I just don't get it. I don't even get the fascination with her, but she is cute. But she has this little Chihuahua named Tinkerbell.

MYERS: Yes.

COSTELLO: Are you aware of that -- Chad?

MYERS: Yes, no.

COSTELLO: Well, supposedly Tinkerbell went missing for a week. Nobody knows where Tinkerbell was. But apparently Tinkerbell came home and...

MYERS: A $5,000 reward.

COSTELLO: Yes, well.

MYERS: And now the coin story.

COSTELLO: Yes, the coin story.

MYERS: A billion dollars worth of coins at a display here. They believe that they have the first silver dollar ever minted, 1794. They can't actually tell that it was the first one, but clearly one of the first years. And it's in perfect condition. Some of these coins worth $300 million. They've got a couple of nickels in there worth $100,000.

COSTELLO: Wow!

MYERS: Wow. It's...

COSTELLO: And they're on display now in Pittsburgh, Pennsylvania.

MYERS: And they are on display. Correct.

COSTELLO: Thank you, Chad, for joining in this morning, as usual.

MYERS: You're welcome.

COSTELLO: Time to take a look at our DAYBREAK "Eye Openers" now.

Take a look at the world's lightest flying micro robot. This is actually pretty cool. Controlled by computer or by a remote control device, it has an onboard camera that can beam wireless images. It's still in the development phase, of course. It can only fly three minutes at a time, but one day it could provide surveillance...

MYERS: You can't tell how big it is.

COSTELLO: It's tiny. It could provide surveillance or help find earthquake or hurricane survivors by searching through the debris because it's so small.

MYERS: Oh, that's good. That's a great idea, yes.

COSTELLO: Pretty cool.

Here's a pet pony named Princess who has the run of the house. The house, I said. Princess is the inseparable friend of 10-year-old Chrissie Bolden (ph). Riding the white Shetland pony helped Chrissie, who suffers from cerebral palsy, strengthen her legs. Friday and Saturday nights Princess comes and sleeps on Chrissie's bed.

MYERS: Eats spaghetti.

COSTELLO: Oh, jeez.

A broken container, a spilled liquid and a strange smell are being blamed for shutting down the entire Fort Wayne, Indiana airport. Authorities shut down operations for 10 hours. And that sure messed up the travel plans of a lot of people. It was finally determined that the noxious odor was an ingredient found in perfume.

MYERS: I think I've smelled that noxious odor on some people walking around this building.

COSTELLO: Oh, we won't mention names. MYERS: OK.

COSTELLO: Here's what's all new in the next half hour of DAYBREAK.

Here, kitty, kitty. It's a dining experience that you've never seen before. Jeanne Moos will take you to the Cat Cafe. It is the cat's meow.

MYERS: Meow, meow, meow, meow. Meow, meow, meow, meow.

COSTELLO: And the U.S. women's swim team is bringing home the gold. A live report out of Athens on their big swim win.

But straight ahead, inside the specialized training of a unique Iraqi strike force. All the details for you when DAYBREAK returns.

(BEGIN VIDEO TAPE)

MICHAEL MOYER, SENIOR EDITOR, "POPULAR SCIENCE": One of the biggest challenges facing American city planners today is how to get more people where they're going when they need to go. One of the ways that people are talking about getting more cars onto the highway is by what they call automated platooning systems, where you take cars and you link them together through wireless networks so that they can travel in a train and they're connected to one another, not physically, but with a wireless connection.

In that way, you can get them, you know, five, 10 feet away from each other, all while going at 60 miles an hour, all while traveling just as safe as anything else.

(END VIDEO TAPE)

(COMMERCIAL BREAK)

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Aired August 19, 2004 - 05:00   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
CAROL COSTELLO, CNN ANCHOR: The mean streets of Iraq's Sadr City -- gunfire, death and deadlines.
It is Thursday, August 19.

This is DAYBREAK.

And good morning to you.

From the CNN Global Headquarters in Atlanta, I'm Carol Costello.

Now in the news, in Najaf today, renewed clashes between U.S. and Iraqi forces and the Mahdi Army. The Iraqi official told CNN just minutes ago radical Shiite cleric Muqtada al-Sadr must hold a public news conference today to announce that he's disbanding his army and leaving the sacred mosque in Najaf. We're going to take you live to Baghdad in less than two minutes.

It's been a year since the attack on U.N. headquarters in Baghdad that killed 22 people, including U.S. envoy Sergio de Mello. United Nations officials in New York and elsewhere will hold ceremonies today to remember.

Will you go gaga for Google? The Internet search engine goes public today with a stock offering of $85 a share. Initially, Google aimed for a figure of $108 to $135 per share.

And the cleanup from hurricane Charley goes on. The death toll now up to 22. It's estimated insurers will pay out almost $7.5 billion.

To the forecast center now -- good morning, Chad.

CHAD MYERS, CNN CORRESPONDENT: Good morning, Carol.

(WEATHER REPORT)

COSTELLO: Fresh violence erupts this morning in the Baghdad neighborhood of Sadr City. The area on the edge of the Iraqi capital is an ongoing center of conflict between U.S. and Iraqi forces and militants. In fact, we just got this video in from Sadr City this morning.

In the meantime, the stand-off in Najaf may be over, or it could get much more violent. Muslim cleric Muqtada al-Sadr has agreed to disarm his militia and leave a holy mosque, but the deal now comes with a number of strings attached.

John Vause joins us live from Baghdad with the latest.

This seems to change minute by minute this morning -- John.

JOHN VAUSE, CNN CORRESPONDENT: Absolutely, Carol.

It seems as if after a dramatic day yesterday, with letters to the Iraqi National Conference from al-Sadr's people saying that he is willing to agree to their demands, we're now right back to square one, exactly where we were yesterday. We've heard from the Iraqi minister of state, who is in Najaf making a number of demands on Muqtada al- Sadr.

The minister of state wants the radical Shiite cleric to hear from his own voice, to announce with his own voice that he will give up, that he will give up his Mahdi militia and that he will leave the mosque. He wants Muqtada al-Sadr to hand over all weapons. When asked where he wants those weapons handed over, the minister of state said Muqtada al-Sadr knows the appropriate place. That is all he would say.

The minister of state went on to say Muqtada al-Sadr must free all citizens which are currently being held by the Mahdi militia and by al-Sadr's supporters. That's the first time we have heard from the Iraqi government saying that Muqtada al-Sadr could, in fact, be holding prisoners.

The minister of state went on to say that Muqtada al-Sadr will not have his own court system and also he will not control his own army. Another very important point which was raised in Najaf just a short time ago, the minister of state saying that Muqtada al-Sadr will still be tried on the charges against him. Muqtada al-Sadr, one of the charges, at least, is a charge of murder. And the minister of state saying that Muqtada al-Sadr will stand trial. If he is found not guilty, then, of course, he is free, as anybody else in Iraq is, to lead his life. And if he would like to be a religious leader, that's fine.

Now, there is a deadline on. There's no hard deadline, only the -- the only thing we're getting from the minister of state is he has a few hours to comply. And when asked what will be the ramifications, what, you know, will there be damage to the mosque if there is an assault, that kind of thing, the minister of state says that the Iraqi government and the Iraqi forces have a plan in place, they have solid military intelligence to deal with this and they believe that they can do this, they can execute this military operation without damaging the mosque.

So we've come full circle in the last 24 hours -- Carol.

COSTELLO: Well, this trial idea really throws a wrench into things because doesn't Muqtada al-Sadr want a role in the government? Why do they think he would ever agree to those terms?

VAUSE: Well, it seems as if, on the face of it at least, anyway, the interim Iraqi government is now setting itself up for a showdown. The interim Iraqi government, in many ways, has been split over how to deal with Muqtada al-Sadr. You have the prime minister and his supporters on the one hand, who want a firm military resolution to deal with Muqtada al-Sadr once and for all. And then on the other hand, you have those within the government who believe that negotiations is, in fact, the way to go.

At this stage, at least, with these statements coming from the minister of state, it appears that those who favor a military solution once and for all are now getting their way.

COSTELLO: John Vause live in Baghdad this morning.

Thank you.

Najaf on the brink -- we will talk more about the impact of what's going on there at the half hour with the Baghdad bureau chief for the "Washington Post." Be sure to stick around for that.

More trouble this morning at the notorious Abu Ghraib Prison in Iraq. Recent fighting has left two detainees dead and five others injured. This as the Army is about to release its report on the prison abuse scandal. How high up the chain of command does the blame go?

As CNN Pentagon correspondent Barbara Starr reports, not very.

(BEGIN VIDEO TAPE)

BARBARA STARR, CNN PENTAGON CORRESPONDENT (voice-over): The Army investigation of intelligence and interrogation practices at Abu Ghraib Prison is expected to recommend up to two dozen personnel face disciplinary or criminal proceedings according to defense officials. This would expand the number of people alleged to be involved in the scandal far beyond the seven soldiers currently charged, all members of a police unit.

The report will detail findings of alleged wrongdoing by members of the 205th Military Intelligence Brigade, contractors and other government personnel. It will recommend actions ranging from potential administrative discipline all the way to a criminal investigation, officials say.

Barring last minute evidence, investigators have concluded there were no orders from higher-ups to abuse prisoners in order to get information. The Army's longstanding conclusion is the abuse was the work of out of control soldiers with local commanders not paying attention.

LT. GEN. PAUL MIKOLASHEK, ARMY INSPECTOR GENERAL: We looked at this through the eyes of the soldiers and what we found, as I mentioned too, was not a good picture.

STARR: The brigade's commander, Colonel Thomas Pappas, will likely be criticized for failing to oversee his troops but is not found to be directly involved in the abuse. No one higher up than the colonel is likely to be held responsible. Top commanders in Baghdad will be cited for not adequately overseeing the prison system. An attorney for one of the soldiers already charges says the intelligence brigade was giving the orders.

GUY WOMACK, CHARLES GRANER'S ATTORNEY: This was an interrogation center. He was being directed by military intelligence officers and others in the intel community.

STARR (on camera): Congress is now likely to get its first look at this report next week and will have many questions about yet another Army investigation of itself.

Barbara Starr, CNN, the Pentagon.

(END VIDEO TAPE)

COSTELLO: On to politics now.

President Bush is taking a pre-convention break at his ranch. Aides say he'll be in Texas until the middle of next week. Before heading west, the president wrapped up nearly three weeks of non-stop campaigning with rallies in Wisconsin and Minnesota.

John Kerry on the campaign trail today. He's meeting with firefighters in Boston in about five hours. His so-called Front Porch Tour continues later in nearby Derry -- Derry, New Hampshire, that is. He ends his campaign tour in Charlotte, North Carolina.

New information this morning on the criticism of John Kerry's Vietnam War record. Larry Thurlow says Kerry lied about coming under fire when he won a Bronze Star. Thurlow is a member of the Swift Boat Veterans for Truth, a public advocacy group critical of Kerry. Thurlow won a Bronze Star during the same mission as Kerry and today the "Washington Post" is reporting he was also being fired at during the same mission, because that's what the citation says for his Bronze Star.

Ohio is considered a major battleground state. As of this moment, a CNN/"USA Today"/Gallup poll shows Kerry with a 10 point lead among registered voters. However, among Ohioans considered likely to vote in November, 48 percent pick Kerry and 46 percent pick Bush, which is, of course, a statistical dead heat.

Paula Zahn went to Ohio to check the pulse of undecided voters. Both the Bush and Kerry camps agree voters there could decide the presidency.

(BEGIN VIDEO CLIP)

TUCKER ESKEW, FORMER WHITE HOUSE COMMUNICATIONS OFFICER: The stakes are very high. This is a critically important state. The president returns here often, has many friends from Ohio and people involved in his administration from this state. So -- and has worked very hard on the issues here. So, I think if you look at the economic agenda of this president and his fight to make America prouder, safer, and stronger, Ohio is at the heart of that. It's the heart of our country. And I think this is a great place to have this sort of discussion.

PAULA ZAHN, HOST: But both of you have to be looking at these numbers, which basically show your two candidates in a statistical dead heat and say we've got to go and get some of these undecided voters out there.

TAD DEVINE, SENIOR ADVISER, KERRY CAMPAIGN: Yes, I think, you know, we're in the epicenter of American politics tonight. And I think if any one of our candidates wins most of the people in this room, he's going to be the next president of the United States.

(END VIDEO CLIP)

COSTELLO: The people in that room put some tough questions to both of those men during Paula's town hall meeting.

In News Across America this morning, what's up with the Scott Peterson murder trial? It looks like we'll have to wait until Monday to hear more from Amber Frey. She was supposed to be cross-examined yesterday. A source close to the case tells CNN a dispute over evidence has delayed the cross-examination of Peterson's mistress.

Gloria Allred is Amber Frey's attorney.

(BEGIN VIDEO CLIP)

GLORIA ALLRED, AMBER FREY'S ATTORNEY: It is, of course, frustrating to Amber, because she was ready. The delay causes a great deal more inconvenience for her and her family. And it's difficult. But she will return on Monday at 9:00 and once again she will be ready for the cross.

(END VIDEO CLIP)

COSTELLO: At issue, taped phone conversations the jury has not heard, conversations the defense now wants to enter into evidence.

The judge in the Kobe Bryant rape trial has relaxed his gag order a bit. Lawyers can now make some comments to reporters, but still cannot talk about the credibility or character of Bryant, his accuser or any witness.

In Miami, two people have been charged with abusing their foster child. Four-year-old Rilya Wilson -- remember her? She disappeared three years ago. One of the caregivers, Geralyn Graham, is now charged with kidnapping. Rilya's disappearance shook up Florida's child welfare agency when it was learned caseworkers had not checked on the girl for 15 months.

Your next flight into Chicago's O'Hare might actually be on time. In an effort to cut down delays, there'll be 12 fewer arrivals into the airport per hour. The move starts in November. So far this year, only two thirds of the flights at O'Hare have been on time. Williamsport, Pennsylvania is where it all begins for so many youngsters. The Little League World Series gets under way tomorrow in Williamsport, with 16 teams from around the globe. In the back half of DAYBREAK in the next hour, we'll talk baseball and its popularity today with the author of "Play Ball," the story of Little League baseball. And a hint for you -- Little League baseball is losing popularity fast.

So, we want to know what you think. DAYBREAK'S e-mail Question of the Day -- is baseball still America's favorite pastime? Daybreak@cnn.com. Daybreak@cnn.com. The question again, is baseball still America's favorite pastime?

Are you waiting to gobble up some Google? Get your checkbook ready. We'll tell you how much a share of the Web site is going to cost you.

Plus...

(BEGIN VIDEO CLIP)

VAUSE: Here their targets are pictures of Osama bin Laden. Soon, fighters of the Mahdi Army, holed up in the shrines of Najaf, could be in their sites.

(END VIDEO CLIP)

COSTELLO: We'll get an exclusive look at how the Iraqi Army is preparing to take over security.

And we take you live to Athens for an amazing story of how perseverance does pay off.

But first, here's a look at what else is making news this Thursday morning.

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COSTELLO: Stocks rise for the fourth straight session. The Dow is now back above 10,000. It'll open 110 points up this morning.

The Nasdaq opens up 36 points.

And the S&P heads up around 13.

Overseas, European stocks struggle, but edge upward. Britain's FTSE 100 was up 18 points.

France's CAC Index showing a 19 point gain.

In Japan, the Nikkei closed up 129 points.

So, are you going Googling today? Today shares of the popular Internet search engine Google are heading for the trading floor on Wall Street. The SEC OKed Google's IPO, but not before Google slashed its price range. CNN's Mary Snow has all the details for you.

(BEGIN VIDEO TAPE)

MARY SNOW, CNN CORRESPONDENT (voice-over): It is Wall Street's debut of a Hollywood movie -- Google, the IPO with drama packed until the end. Google announcing the final price at $85 a share, at the bottom end of Google's forecast which already had been reduced just hours earlier by 25 percent, signaling far weaker than expected interest in the much hyped IPO. Still Google expects to sell nearly 20 million shares, raising about $2 billion. Part of the drama? Google broke with tradition and offered shares through a blind auction with buyers bidding for shares. Even seasoned investors initially guessed too high.

MATTHEW RHODES KROPF, COLUMBIA UNIVERSITY: I just picked something really I was winging it.

SNOW: Business Professor Rhodes Kropf who specializes in auctions bid shares at $120.

KROPF: Individuals like myself really have almost no way to come up with how to get their information to a per share price.

SNOW: Google's young company founders, whose motto is don't be evil, vow to allow ordinary people better access to its IPO by using the auction process. But those who follow public offerings say the price was too steep.

DAVID MENLOW, IPO FINANCIAL NETWORK: The best analogy I can give you for what the Google model originally was was similar to two young kids on the corner with a lemonade stand trying to sell lemonade at $10 a cup and not getting any sales.

SNOW: And the company had to cut its price.

UNIDENTIFIED MALE: What happened was I think the company realized that demand for its IPO shares was not what the company had expected.

SNOW: But it wasn't just the price that kept investors on the edge of their seats. A "Playboy" article featuring Google's founders raised legal issues about whether the company violated a Securities and Exchange Commission requirement to stay quiet in the period leading up to an IPO.

(on-camera): The next test comes when Google joins its Internet counterparts in trading at the tech-heavy Nasdaq. And just where the stock goes will give the final rating on whether this unusual IPO process was a success or failure.

Mary Snow, CNN Financial News, New York.

(END VIDEO TAPE)

COSTELLO: Your news, money, weather and sports.

It is 5:18 Eastern.

Here's what's all new this morning.

Oprah Winfrey calls it a reality check. She's talking about her experience as a juror in a murder trial. She and the other jurors found the defendant guilty. Winfrey plans to talk about the experience next week on her program. Yes, she's had her cameras following her.

In central Washington, a wildfire has burned at least 11,000 acres. Hundreds of residents were forced from their homes. No deaths or injuries reported.

In money news, oil prices continue to barrel past record breaking highs. Light crude is now above $47 a barrel. New worries about violence in Iraq and a drop in the U.S. oil reserves triggered the latest increase.

In culture, Hooters is hitting the Las Vegas strip. Hooray! The Hotel San Remo will be refashioned into a Hooters Hotel Casino. Plans include a tropical theme with lots of big things, like a super sized pool, big restaurants and big -- well, you know.

In sports, Houston Astros pitcher Andy Pettitte is out for the season. He goes into surgery Tuesday to repair a torn elbow tendon. Pettitte moved to the Astros from the Yankees in describe.

Hi -- Chad.

MYERS: Good morning, Carol.

How are you?

COSTELLO: Good.

(WEATHER REPORT)

COSTELLO: Those are the latest headlines for you this morning.

What's hot on the Web? Would you believe a beer guzzling bear? Stay with us. It's a story you just won't want to miss.

And our e-mail question of the morning. Is baseball still America's favorite pastime? Little League is fast losing popularity among children. So is baseball still America's favorite pastime, or is it lacrosse? We want to hear from you this morning. Daybreak@cnn.com.

(COMMERCIAL BREAK)

COSTELLO: You know, we're always interested in what you're clicking onto on cnn.com. It is time to check our Web clicks this morning to see what stories are getting your attention on cnn.com. And they're very interesting this morning.

MYERS: Sometimes news of the weird. COSTELLO: News of the cute, kind of, I guess.

MYERS: Maybe.

COSTELLO: The number one clicked on story on cnn.com, a bear guzzles 36 beers and passes out at campground.

MYERS: Yes. He was .27 when he did the Breathalyzer.

COSTELLO: He broke into a camp site and there were two kinds of beer. It must have been a beer party camping trip. I don't know. There was Busch beer and Rainier beer.

MYERS: Rainier.

COSTELLO: Oh, is that how you pronounce it? I should have asked the expert.

MYERS: And the commercial is Rainier beer. And the bear went for the Rainier beer and the local brew.

COSTELLO: Yes, he stuck to it. And the only -- they tried to catch the bear, so they had to set a trap using Rainier beer.

MYERS: They put honey in the trap and beer cans and he went in there and they got him.

COSTELLO: And he's being relocated now.

MYERS: Relocated, right.

COSTELLO: The second most popular clicked on story, Paris Hilton's dog is found. I just don't get it. I don't even get the fascination with her, but she is cute. But she has this little Chihuahua named Tinkerbell.

MYERS: Yes.

COSTELLO: Are you aware of that -- Chad?

MYERS: Yes, no.

COSTELLO: Well, supposedly Tinkerbell went missing for a week. Nobody knows where Tinkerbell was. But apparently Tinkerbell came home and...

MYERS: A $5,000 reward.

COSTELLO: Yes, well.

MYERS: And now the coin story.

COSTELLO: Yes, the coin story.

MYERS: A billion dollars worth of coins at a display here. They believe that they have the first silver dollar ever minted, 1794. They can't actually tell that it was the first one, but clearly one of the first years. And it's in perfect condition. Some of these coins worth $300 million. They've got a couple of nickels in there worth $100,000.

COSTELLO: Wow!

MYERS: Wow. It's...

COSTELLO: And they're on display now in Pittsburgh, Pennsylvania.

MYERS: And they are on display. Correct.

COSTELLO: Thank you, Chad, for joining in this morning, as usual.

MYERS: You're welcome.

COSTELLO: Time to take a look at our DAYBREAK "Eye Openers" now.

Take a look at the world's lightest flying micro robot. This is actually pretty cool. Controlled by computer or by a remote control device, it has an onboard camera that can beam wireless images. It's still in the development phase, of course. It can only fly three minutes at a time, but one day it could provide surveillance...

MYERS: You can't tell how big it is.

COSTELLO: It's tiny. It could provide surveillance or help find earthquake or hurricane survivors by searching through the debris because it's so small.

MYERS: Oh, that's good. That's a great idea, yes.

COSTELLO: Pretty cool.

Here's a pet pony named Princess who has the run of the house. The house, I said. Princess is the inseparable friend of 10-year-old Chrissie Bolden (ph). Riding the white Shetland pony helped Chrissie, who suffers from cerebral palsy, strengthen her legs. Friday and Saturday nights Princess comes and sleeps on Chrissie's bed.

MYERS: Eats spaghetti.

COSTELLO: Oh, jeez.

A broken container, a spilled liquid and a strange smell are being blamed for shutting down the entire Fort Wayne, Indiana airport. Authorities shut down operations for 10 hours. And that sure messed up the travel plans of a lot of people. It was finally determined that the noxious odor was an ingredient found in perfume.

MYERS: I think I've smelled that noxious odor on some people walking around this building.

COSTELLO: Oh, we won't mention names. MYERS: OK.

COSTELLO: Here's what's all new in the next half hour of DAYBREAK.

Here, kitty, kitty. It's a dining experience that you've never seen before. Jeanne Moos will take you to the Cat Cafe. It is the cat's meow.

MYERS: Meow, meow, meow, meow. Meow, meow, meow, meow.

COSTELLO: And the U.S. women's swim team is bringing home the gold. A live report out of Athens on their big swim win.

But straight ahead, inside the specialized training of a unique Iraqi strike force. All the details for you when DAYBREAK returns.

(BEGIN VIDEO TAPE)

MICHAEL MOYER, SENIOR EDITOR, "POPULAR SCIENCE": One of the biggest challenges facing American city planners today is how to get more people where they're going when they need to go. One of the ways that people are talking about getting more cars onto the highway is by what they call automated platooning systems, where you take cars and you link them together through wireless networks so that they can travel in a train and they're connected to one another, not physically, but with a wireless connection.

In that way, you can get them, you know, five, 10 feet away from each other, all while going at 60 miles an hour, all while traveling just as safe as anything else.

(END VIDEO TAPE)

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